Understanding Partnerships

Front

What is a partnership?

Back

A partnership is a business structure where two or more individuals share ownership and management responsibilities.

Front

How many types of partnerships are there?

Back

Three types of partnerships

Front

Name the three types of partnerships.

Back

general partnership, limited partnership, limited liability partnership

Front

What is the main document needed to operate a partnership?

Back

Partnership agreement

Front

What does a partnership agreement outline?

Back

A partnership agreement outlines the roles, responsibilities, and contributions of each partner.

Front

List one advantage of forming a partnership.

Back

Shared resources and expertise.

Front

Why might investors prefer partnerships over sole proprietorships?

Back

Partnerships offer shared financial responsibility and access to diverse skills.

Front

What is a general partnership?

Back

A general partnership is a business arrangement where two or more individuals share management and profits.

Front

What distinguishes a limited partnership from a general partnership?

Back

A limited partnership includes both general and limited partners, while a general partnership consists only of general partners.

Front

What is a limited liability partnership?

Back

A limited liability partnership (LLP) is a business structure where partners have limited liabilities and are not personally responsible for the partnership's debts.